‘An Analysis of Factors Influencing Attrition in the growing Economies’

INTRODUCTIONIn the recent decades the Indian industry has changed its outlook. The employment scene has changed its appearance. The factors like skill sets, job satisfaction drive the employment and not just the money. The employer hence faces the heat of continuous employee turnover. Continuous efforts are made by organisations to control the employee turnover rate as it directly affects the performance of the organisation as many key people leave the organisations for various reasons at crucial points. This turnover is normally known as ATTRITION.

Defining attrition:
A reduction in the number of employees through retirement, resignation or death.

Defining Attrition rate:
The rate of shrinkage in size or number.

In the best of worlds, employees would love their jobs, like their coworkers, work hard for their employers, get paid well for their work, have ample chances for the advancement, and the flexible schedules so they could attend to personal or family needs as and when necessary. But then there’s the real world. And in the real world, employees do leave, either because they want more money, hate their co-workers, want a change or because their spouse gets a dream job in another state. So, what does the turnover cost? And which employees are likely to have the highest turnover? Who is likely to stay the longest?

Impact of attrition

Direct impact: A high attrition indicates the failure on the company’s ability to set effective HR priorities. Clients and business get affected and the company’s internal strengths and weaknesses get highlighted. New hires need to be constantly added, further costs in training them, getting them aligned to the company culture, etc.,—all a challenge.

Indirect impact: Problem for the company in attracting potential employees. Typically, high attrition also leads to a chronic or systemic cycle—attrition brings decreased productivity, people leave causing others to work harder and this contributes to more attrition. All this has a significant impact on the company’s strength in managing their business in a competitive environment. Productivity and profitability are both impacted, either negatively and positively, according to the type of attrition. The cost of hiring is sometimes not less than two to three times the salary of the employee. The impact on work progress is tremendous, particularly if a project is underway and one of the key people leaves. “It leads to dip in entire organizational efficiency, and a lot depends on how it is able to cover the setback,” Organizations should execute top of the line retention policies in the right earnest and consistency. They should be more employee-centered and look for further ways to “bond” employees to their companies. “Company performance is optimally aligned to the skills its employees possess. High attrition implies that certain necessary skills are vulnerable or are not present due to employees being lost. It results in lower than optimal levels of business performance. If the skills are constantly not available, the situation gets compounded into a crisis with key projects, revenues, etc., getting affected. Business is then reduced to just managing crisis.”

Reasons why organizations are not able to retain employees

1.Performance goals are unclear. In a fast growing team or business the focus is on getting the thing done today, but rarely are performance goals thought through and employees told as to which resources to approach for help. 2.Reward systems are not transparent. Most employees who get salary increases because they have a rare skill at a particular point of time think they got their raise for excellent performance. Can you share details about how they have been compensated? 3.Perceived equity of reward systems is low. Like it or not, employees discuss salary details and if there is any...

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...MGMT 310 Research Paper
“Attrition Rate”
Abban Osman
05/13/2013
Research Question:
What factors create a high attrition rate in IT fields?
Introduction:
In order to properly answer this question I had to research. Professional journal and articles have been used so a precise answer can be given. An IT recruiter also got interviewed to give current attrition trend in IT field.
Research:
Attrition is a reduction or decrease in numbers, size, or strength. A gradual reduction in work force without firing of personnel, as when workers resign or retire and are not replaced (attrition. (n.d). Information Technology companies are notorious for having higher attrition rates. There are several factors that lead to these higher attrition rates, like: Historical events, role Demographic variables, Role stressors and Career Experiences, which also leads to problems for people in the industry.
Although they were many factors that lead to a high attrition rate, a big factor in this field was the Dot-com bubble burst. When the Dot-com bubble burst happened in 2000, many did not think that the industry would rejuvenate itself so rapidly. The Information Technology industry had few takers right after the Dot-com bubble burst, and the financial institutions and their creditors had turned their backs on companies in the Information technology field (Adhikari,...

...are being circulated in organizations and across industries, employees take little time to ponder and leave for greener pastures. In the event the employee feels dissatisfied with his job content, colleagues, boss or a general feeling of discontentment, disillusionment or disappointment creeps in him, considering present market conditions he need not think twice but can easily chucks for good.
But obviously it is not good for the employers. Organizations spend a major buck in inducting an employee, beginning from the recruitment process to his internalization in the organization. After reaping rich benefits in the organization in terms of learning, growth, development and availing every possible opportunity in that time span he feels he should go. The HR department is left in the hanging as how to fill in the gap between the demand and supply in terms of human resources.
But it helps organizations understand why at all attrition takes place. Why at all at the first place did the idea for leaving come in the mind of the employee. And if at all it came, then why the organization was not pro-active enough to have sensed his dissatisfaction. Furthermore why was it not well equipped to have stopped him from leaving? The entire cycle is vicious.
Normally no one welcomes change unless it is forced to be applied. Similarly when an employee joins the organization, he really has no intension of leaving....

...INTRODUCTION
Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. Not too long ago, companies accepted the "revolving door policy" as part of doing business and were quick to fill a vacant job with another eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future.
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Do You Have an Employee Retention Strategy That Also Increases Employee Motivation?
Improving Employee Retention
Exit Interview Surveys & Employee Retention Surveys Identify Ways to Decrease EmployeeAttritionEmployee Retention: When is your Next Key Employee Going to Leave and What are you Doing About It?
MEANING
Employee retention involves taking measures to encourage employees to remain in the organization for the maximum period of time....

...What is attrition? 3
What are signs of attrition? 3
Calculation of Attrition Rates 3
Attrition rates in India 4
The highlights of the study in question are as follows:- 4
Costs of Attrition 7
Causes of Attrition 9
Survey details and insights 11
What can organizations do to retain employees 16
Short-term Actions 16
Long-term Actions 17
Retaining the “Game Changers” 18
References 20ATTRITION – CAUSE AND EFFECT
What is attrition?
Attrition is the reduction in workforce by means of resignations, retirements and death. It is also known as total turnover or wastage rate. Turnover is defined as a change in the workforce due to accessions, quits, discharges, and layoffs. The difference between the two is that attrition is a function of a declining workforce, whereas turnover is the function of a stable or expanding workforce.
In the modern context, both these terms are used interchangeably. But, one thing is common; both attrition and rising employee turnover results in major organizational and financial stress.
What are signs of attrition?
High turnover or attrition and low employee morale in all or part of the organization are two major indicators of an ineffectual work environment. Related workplace indicators that may exist in such a...

...REPORT
ON
EMPLOYEEATTRITION
INTRODUCTION
The purpose of this research is to explore the attrition rates and evaluate changes that will positively affect the attrition issue. Qusetionnaire method is ued for the research. Employees are inteviewed over telephone from different regions and they have many opinions, problems and suggestions, which will be discussed later.
The main objective of the study are:-
* To understand the factors central to attrition.
* To calculate the attrition rate.
* To suggest the activities that might be undertaken in order to decrease the attrition rate and retain employees.
Assumptions of the study:-
* The sample taken will represent the fair idea about the study.
* It is believed that the employees will provide real and authentic information.
* The information by the person contacted is not having any kind of bias.
FINDINGS TILL NOW
MAIN REASONS
* GOT BETTER OPPORTUNITY.
* LOW SALARY.
* DISTANCE PROBLEM.
* NO GROWTH IN THE JOB.
* LACK OF SUPPORT FROM THE AUTHORITY.
* NO MOTIVATION FROM THE SUPERIORS.
* WORKING CULTURE IS NOT PROFESSIONAL ENOUGH.
* BAD RELATIONS FROM THE MANAGERS.
* GEOGRAPHICAL REASONS (TRANSFER ISSUES).
* LACK OF RECOGNITION AND RESPECT FROM THE COMPANY.
* TOO MUCH WORK PRESSURE.
* COMPANY’S POLICIES WAS NOT IN FAVOUR (PROMOTION ISSUES)....

...Research Paper
On
Exit Interview – A Way Out to Attrition
Prepared by
(Deepshikha Satija)
Deepshikha Satija MBA, MPhil.)
Research Scholar, Singhania University
Deepshikha237@yahoo.co.in, Deepshikha237@gmail.com
Under Guidance of:
Dr. Parul Khanna
MBA, Ph.D
Assoc. Prof. &Dean R&D
Institute of Management & Technology, Faridabad
drparulkhanna07@gmail.com
Prof. Deepshikha Satija, MBA (HRM & IT) from M.D.University Rohtak of 1999-2001 batch. She is currently working as an Assistant Professor in Indira School of Business Studies, Pune, since last five years. Before she had worked in various capacities in corporate world for more than five years in NCR. Contact: 9764257416, deepshikha.satija@indiraisbs.ac.in
Abstract:
Objective: To understand the Attrition problems the organizations are facing today & to realize the importance of Exit Interviews, which can be a preventive tool in the hands of Management to retain the Human Assets who are indispensible in todays dynamic business environment.
Attrition is voluntary and involuntary terminations, deaths, and employee retirements that result in a reduction to the employer’s physical workforce.
There are several HR policies that companies currently follow such as providing a better work life balance, performance based benefits, career development programs to retain the workforce and inspite of this...

...A Research Project Report On ATTRITION MANAGEMENT
Submitted in partial fulfillment for the requirement of the MBA Degree awarded by Bangalore University
Submitted by Ponnappa I.S 04XQCM6064
Under the guidance of Praveen Kamat Professor M.P.Birla Institute of Management
M.P.Birla Institute of Management Race course road Bangalore-1 INDIA
1
DECLARATION
I hereby declare that this dissertation entitled ‘ATTRITON MANAGEMENT’ is the result of project work undertaken by me under the guidance and supervision of Mr. Praveen Kamat, Professor, M.P.Birla Institute of Management, Bangalore. I also declare that this dissertation has not been submitted to any other University/Institution for the award of any Degree.
(Ponnappa I.S)
2
CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled ‘ATTRITION MANAGEMENT’, has been undertaken and completed by Mr. Ponnappa I.S under the guidance and supervision of Mr. Praveen Kamat, Professor, MPBIM, Bangalore.
(Dr. N.S. Malavalli)
Principal MPBIM, Bangalore
3
CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled ‘ATTRITION MANAGEMENT’, has been undertaken and completed by Mr. Ponnappa I.S under my guidance and supervision
(Mr. Praveen Kamat)
Professor, M.P.B.I.M Bangalore
4
Acknowledgement
The satisfaction that accompanies the successful completion of any task would be...

...﻿A Report on
PATTERNS
AROUND
ATTRITION
Grasim Industries Limited
Staple Fibre Division
Birlagram, Nagda
By
Abhishek Singh Chouhan,
Alpine Institute Of Technology, Ujjain
Literature Review
OUR ASSEST WALK OUT OF THE DOOR EACH EVENING.WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING.
-NARAYAN A MURTHY
(CHIEF MENTOR OF INFOSYS)
Attrition in a work environment refers to a reduction or decrease in the size or strength the work force, or a gradual reduction in labor occurring through means other than firing employees. Both of these explanations can be applied to activities addressed by human resources, and both can have positive and negative ramifications for a company. Human resources teams factor attrition rates into their department budgets to account for potential losses in productivity and the costs associated with replacing departing employees. When attrition occurs, the remaining duties and job responsibilities can burden employees and managers with additional duties with no increase in pay. Even if HR staff members distribute the extra workload throughout other departments, they may witness managers moving on to other companies. The potential for employment promotion may no longer exist when positions are retired due to attrition. Employee morale can suffer a situation that HR should work to remedy...